Pellegrino v. Robert Half International, Inc.

182 Cal. App. 4th 278, 106 Cal. Rptr. 3d 265, 2010 Cal. App. LEXIS 228
CourtCalifornia Court of Appeal
DecidedJanuary 28, 2010
DocketNo. G040762
StatusPublished
Cited by22 cases

This text of 182 Cal. App. 4th 278 (Pellegrino v. Robert Half International, Inc.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pellegrino v. Robert Half International, Inc., 182 Cal. App. 4th 278, 106 Cal. Rptr. 3d 265, 2010 Cal. App. LEXIS 228 (Cal. Ct. App. 2010).

Opinion

Opinion

FYBEL, J.

INTRODUCTION

Plaintiffs Maria Pellegrino, Nadia Balici, Carolyn Cox, Kelli Maresch, Jennifer McCasland, and James Rossetto (collectively, plaintiffs) sued their former employer, temporary staffing firm Robert Half International, Inc. (RHI), for violations of the wage and hour provisions of the Labor Code and for unfair competition.1 Plaintiffs’ unfair competition claims were solely based on the wage and hour claims. The trial court bifurcated plaintiffs’ equitable claims for unfair competition from the remaining claims, and the parties first tried to the trial court RHI’s affirmative defense that plaintiffs were exempt employees. After RHI completed its case-in-chief on that affirmative defense, the trial court granted plaintiffs’ motion for judgment under Code of Civil Procedure section 631.8, concluding plaintiffs did not fall within the administrative exemption. Reserving the right to seek recovery of attorney fees, the parties thereafter stipulated to judgment as to all remaining issues in the case and judgment was entered accordingly. The trial court granted plaintiffs’ motion for attorney fees, and an amended judgment was entered, awarding, inter alia, plaintiffs’ counsel $978,121.98 in attorney fees.

RHI challenges the trial court’s attorney fees award on the grounds the court (1) failed to sufficiently discount a portion of plaintiffs’ attorney fees to account for the trial on the unfair competition claims for which no attorney fees were available; (2) should not have applied any multiplier to the lodestar figure in determining the attorney fees award, much less a multiplier as high as 1.75; and (3) improperly awarded an enhancement for “fees on fees.”

[283]*283We affirm in part and reverse in part. The trial court did not err by reducing the lodestar amount by no more than 15 percent to reflect the parties’ litigation of the unfair competition claims, because the legal and factual issues presented in those claims were interrelated with those issues presented by plaintiffs’ wage and hour claims (for which attorney fees are available). The record supports the trial court’s application of a 1.75 multiplier to the reduced lodestar amount for attorney fees generated up until plaintiffs brought their motion for attorney fees, based on the factors set forth in Ketchum v. Moses (2001) 24 Cal.4th 1122 [104 Cal.Rptr.2d 377, 17 P.3d 735] (Ketchum). The record does not support, however, the application of a 1.75 multiplier to fees incurred in bringing the motion for attorney fees. We therefore reverse the amended judgment to the extent it applies a multiplier to fees incurred in bringing the attorney fees motion and remand to the trial court to recalculate the attorney fees award accordingly. We otherwise affirm the amended judgment.

BACKGROUND2

I.

Pleadings

In the first amended complaint, plaintiffs alleged RHI (1) failed to pay overtime compensation in violation of Labor Code sections 510, subdivision (a), 1194, 201, 202, and 203; (2) failed to provide proper meal and rest breaks in violation of Labor Code sections 512 and 226.7 and Industrial Welfare Commission wage order No. 4-2001 ;3 (3) failed to maintain and submit itemized wage statements in violation of Labor Code section 226; and (4) engaged in unfair competition in violation of Business and Professions Code section 17200 based on the above referenced Labor Code sections. (All further statutory references are to the Labor Code unless otherwise specified.) Cox, McCasland, and Pellegrino alleged additional claims against RHI for nonpayment of commissions and unfair competition for such nonpayment (Bus. & Prof. Code, § 17200 et seq.). The first amended complaint alleged plaintiffs were employed by RHI as account executives, branch managers, and/or division directors. It further alleged plaintiffs regularly worked more than eight hours per day and/or 40 hours per week, but were not paid overtime wages or commissions and were not provided meal and rest periods or itemized statements of wages.

[284]*284RHI filed an answer to the first amended complaint which contained a general denial and alleged several affirmative defenses. RHI’s eighth affirmative defense alleged all of plaintiffs’ claims were barred “by a contractual agreement between Plaintiffs and Defendant to limit the time period within which any claims against Defendant may be filed.” RHI also alleged, as its sixth affirmative defense, that plaintiffs were exempt from overtime compensation requirements under the Labor Code and the Industrial Welfare Commission wage order No. 4-2001 because they “were employed in an administrative, executive, professional, and/or relevant sales capacity within the meaning of the applicable wage order(s).”

II.

Motions for Summary Judgment and Summary Adjudication

RHI filed motions for summary judgment against plaintiffs. As to each plaintiff except Pellegrino, RHI argued the alleged claims were barred because each plaintiff failed to file his or her lawsuit within six months of the termination of employment as required by the employment agreement each signed.4 RHI’s motions were also brought on the ground that plaintiffs’ wage and hour claims and unfair competition claims failed because plaintiffs were exempt from the laws underlying their claims.

Each plaintiff (except Pellegrino) filed a motion for summary adjudication on the ground the provision of his or her employment agreement shortening the applicable statutes of limitations was unlawful, and all plaintiffs moved for summary adjudication on the ground RHI’s exemption affirmative defense failed because they did not meet the requirements for any exemption as a matter of law.

After concluding the limitation on claims provision was unenforceable, the trial court denied each of RHI’s motions for summary judgment and granted McCasland’s, Balici’s, Cox’s, Rossetto’s, and Maresch’s motions for summary adjudication on that issue. The court otherwise denied the motions for summary adjudication on the ground a triable issue of material fact existed as to whether plaintiffs were exempt employees.

[285]*285III.

Trial and Motion for Judgment on the Exemption Defense

Before trial, the court bifurcated plaintiffs’ unfair competition claims and ordered that such equitable claims first be tried to the court without a jury. As agreed to by RHI’s counsel, the court bifurcated the exemption affirmative defense and tried that issue first. After 17 days of trial, and at the close of RHI’s case-in-chief on the exemption affirmative defense, plaintiffs moved for judgment under Code of Civil Procedure section 631.8, arguing they performed a production or sales role in RHI’s day-to-day business, but did not have an impact on RHI’s policies or general business operations and therefore could not be exempt administrative employees. The trial court granted plaintiffs’ motion.

IV.

Stipulation for Judgment As to Remaining Issues and Appeal

On February 4, 2008, the parties entered into a stipulation regarding the remaining issues in the litigation.

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Cite This Page — Counsel Stack

Bluebook (online)
182 Cal. App. 4th 278, 106 Cal. Rptr. 3d 265, 2010 Cal. App. LEXIS 228, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pellegrino-v-robert-half-international-inc-calctapp-2010.